Discussion post 5

THE UNITED STATES POSTAL SERVICE: PROFIT, VALUE CREATION, AND FINANCIAL SERVICES ASSIGNMENT QUESTIONS Question 1: What do the USPS’s financials tell you about whether or not (a) it creates economic value, (b) is more or less efficient than UPS or FedEx, and (b) needs to reexamine its business model? Explain your answer.” Question 2: What positive externalities does USPS produce, and how has the value of these externalities changed o ver time?” Questions 3: Explain how you would calculate the economic value cr eated by the USPS, taking into account the positive externalities it produces.” Question 4: What capabilities and competencies does the USPS have that would enable it to create ec onomic value by offering financial services? Would creating economic value this way “fit” with the USPS’s overall purpose, culture, and history? Why or why not? Explain. Question 5: If the USPS were to begin offering financial services, how would it imp act its revenue, the consumer surplus it creates, and the positive externalities associated with its operation? Discuss potential impact on each of these three value components. Question 6: Should the USPS begin offering financial services? Why or why no t? 2 Exhibit 1 : Statement of Operations 3 Exhibit 2 : Balance Sheets 4 Exhibit 3: Information Sources